One of 4 Korean startups considers moving business abroad

One out of four startups in South Korea is considering moving its business abroad in search of looser regulation. 

In a survey of 256 startups by the Korea International Trade Association (KITA), more than 25% of respondents answered they are considering moving their businesses beyond the peninsula.

Of the 65 startups, 17 of them answered they are very much looking to relocate, while 48 companies answered they are leaning toward moving outside the country. 

Around 44% of the respondents answered that domestic regulations are wreaking havoc on their corporate management and the development of new technology. The rate is almost double that of those who responded that the regulations are not affecting business practices. 

The regulatory barriers are the biggest stumbling blocks to technological development and commercialization, nearly 70% of the respondents said. 

When offered multiple responses, liquidity came as the top concern for startup founders with nearly 66% of the respondents saying fundraising is the most challenging part of their job. Trailing behind was the rise in management fees and difficulty in hiring subject matter experts. 

Write to Sang-Eun Lee at selee@hankyung.com
Jee Abbey Lee edited this article.